Blog Question: Glass Cover under an ISR policy
I received this question from a reader:
I have a client who has a number of very badly damaged (malicious) windows, but not broken as per the Glass cover.
The Policy is a Mark IV Modified ISR.
Can you please advise if, as it isn’t covered under the Glass Section, it is covered under the policy in general.
Tony” [surname and email provided]
I am not sure if a claim has been lodged and declined or if the broker is checking before lodging the claim. No doubt the issue being considered is that the damage to the glass does not extend all the way through the glass. This is not an issue under a standard Mark IV ISR policy. As such my reply to the broker was as follows:
An ISR policy is not like a business pack. It covers all real and personal property (which includes the glass) for any damage by any cause except where it is excluded by a property or perils exclusion.
On the subject of what is actually covered, the actual wording of the Policy reads:
All real and Personal Property of every kind and description (except as hereinafter excluded) belonging to the Insured or for which the Insured is responsible or has assumed responsibility to insure prior to the occurrence of any damage, including all such property in which the Insured may acquire an interest during the Period of Insurance.”
Turning next to The Indemnity, the Policy reads:
“SECTION 1 – MATERIAL LOSS OR DAMAGE
In the event of any physical loss, destruction or damage (hereinafter in Section 1 referred to as ‘damage’ with ‘damaged’ having a corresponding meaning) not otherwise excluded happening at the Situation to the Property Insured described in Section 1 the Insurer(s) will, subject to the provisions of this Policy including the limitation on the Insurer(s) liability, indemnify the Insured in accordance with the applicable Basis of Settlement.” [emphasis mine]
There is no exclusion on glass (the property) nor for the peril of malicious damage and so the loss should, subject to any policy excess (I assume it was all one event) be covered.
The sub-limit for Glass, if there is one only relates to the Basis of Settlement clause (g) and does not have exclusions etc.
For the sake of completeness I include the wording of the Basis of Settlement clause for glass under the Modified version of the ISR as follows.
“(g) On glass: the cost of repairing or replacing the broken glass including:
(i) temporary shuttering and/or hiring of security service pending replacement of broken glass.
(ii) signwriting or ornamentation on glass,
(iii) replacement burglar alarm tapes on glass,
(iv) removing and re-fixing of window and show-case frames and fittings,
(v) heat reflecting material or process on glass.”
I say all this speaking about a standard ISR Mark IV wording. This may have been altered by some endorsement I am not aware of but it should be covered.
This of course is all explained in my book “Understanding the ISR Policy” which can be obtained through the LMI website at: http://www.lmigroup.com/Publications.aspx?catId=26